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International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

Volume: 05 Issue: 01 | Jan-2018 www.irjet.net p-ISSN: 2395-0072

A REVIEW ON PERFORMANCE MANAGEMENT AND APPRAISAL IN


CONSTRUCTION INDUSTRY TOWARDS PROJECT PERFORMANCE
R.Poovitha 1, D.Ambika 2, B.Lavanya3

P.G Scholar, Department of Civil Engineering, Kongu Engineering College, Perundurai, Tamilnadu, India.
1,3

2 Assistant Professor, Department of Civil Engineering, Kongu Engineering College, Perundurai, Tamilnadu, India.
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Abstract - Construction Industry is one of the most management system is needed as an important system
prospering industries in the whole world. The benefaction for integrating and managing employee and
of the construction industry to long-term national organizational performance. Performance management
development and economic growth is extensively is not achievable unless there are effective processes of
recognized, featuring its importance, specifically to continuous development. This addresses the core
developing countries. Performance measurement and competencies of the organization and the capabilities of
performance appraisal has been liable to be subjected to a individuals and teams. It involves activities to ensure
considerable amount of research and consideration over that goals are consistently being met in an effective and
the past decade years. The trigger point for much of this efficient manner. Performance appraisal is one of the
research has been the inadequacy of performance element of performance management which involves
measurement systems based on traditional financial different measurements throughout the organization. It
management and the initiation of nonfinancial measures facilitates the determination of incentives, perquisites,
in construction industry. The principal purpose of this fringe benefits and piece rate wages. It is an ongoing
paper is to review the main performance measurement process of obtaining, researching, analyzing and
frameworks and the performance management and the recording information about the worth of an employee.
appraisal executed in the current scenario. Performance appraisal is a continuous process of
identifying, measuring and developing performance in
Key Words: Performance management, organization by linking each individual’s performance
Performance appraisal, Performance measurement, and objectives to the organization’s overall mission and
Financial management, Economic growth. goals.

1. INTRODUCTION 3. OBJECTIVE

Construction industry is one of the most significant The objectives of this research are state below
industries with blooming opportunities, being at the
same time the largest consumer of the manpower.  To validate the selection techniques and human
Manpower contributes workforce solutions and resources policies to meet regulatory requirements
workforce resources for numerous construction  To provide the opportunity for organizational
companies. Every organization has been well established diagnosis and development.
with certain objectives to achieve. These objectives can  The potential of a person for future growth and
be achieved successfully by employing the resources like development with improvement of the effective
men, machines, materials and money. All these above utilization of manpower to meet the desired goals
resources are important but out of these the manpower and get the competitive advantages over their
is the most important. It plays a significant role in competitors in the markets.
performing tasks for accomplishing the goals. The
purpose of this study is to utilize the human resources in 4. NEED FOR THE STUDY
a most optimal manner so that targets can be achieved
very effectively and efficiently and to identify the Construction industry has an important impact on the
abilities and the psychological problems of the performance of an employee in terms of productivity, job
employees to make maximum performance of them. So knowledge, creative ability and professional attitude.
that the quality and quantity of total production This talk will generally talk about the main need for
increases. identifying the right candidates for the right teams is a
crucial part of successful management. This paper
2. DEFINITION investigates the team cohesion and overall productivity
almost like a brainstorming session. And the main
Performance management is the process of setting purpose of this study is the need to stay up-to-date on
people in a work environment and enabling them to industry best practices and it is important for employees
perform the best of their abilities. Hence performance to know where they stand in their workplace.

© 2018, IRJET | Impact Factor value: 6.171 | ISO 9001:2008 Certified Journal | Page 1012
International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056
Volume: 05 Issue: 01 | Jan-2018 www.irjet.net p-ISSN: 2395-0072

5. SCOPE OF THE WORK Iqbal et al (2013) described the basic purpose of an


appraisal system should be to improve the employee
The scopes of the present study of performance performance that will leads towards the organization
appraisal are as follows success. This also focuses on the relationship between
performance appraisal and employee’s performance and
 This study provide appraisal feedback to employees paying consideration to the motivation role as a
and thereby serve as vehicles for personal and moderator and also to find out the impact of
career development and allow the management to performance appraisal on employee’s performance and
take effective decision against drawbacks for the analyses that motivation affects the relationship of
wellbeing of the employee’s development. performance appraisal and employee’s performance.
 To improve employee work performance by helping
them realize and use their full potential in carrying Namho Kim et al (2007) focused on the positive
out their firm’s mission. performance management at the project level and
 The main aim of the study is to find out the carried out a simulation to know how performance
effectiveness of performance appraisal & management are performed at project level and also
development programme conducted at construction proposed a frame work based on contents of each step in
industries. performance management process. It serves as a basis
 This study helps to know the level of importance of for influencing working habits of the employees. In this
appraisal system. suggested method performance process is the most
important thing to be considered and some of the actions
6. STATEMENT OF RESEARCHERS are achieved. This has contributed for process,
framework and experiment of efficient performance
Cheng et al (2017) aimed to present a job performance management possibility.
evaluation process for construction companies. This
presents the use of the analytic network process (ANP) 7. METHODOLOGY
to assign weights to a set of job performance criteria. It
also describes a process for job performance evaluation The methodology of this research study is described and
which can incorporate the ANP tool to develop a decision explained based on the objectives of the project. This
model and to compute the local relative weights of research study is commenced by reviewing the
elements and the final weighted values of job admissible literatures. From the literature study the
performance criteria when interdependent influences factors affecting performance in construction projects
have been taken into account. This also presents the use are identified. Based on the factors the questionnaire in
of a scorecard to evaluate job performance periodically prepared and the questionnaire survey is conducted
during the project. among various participants in different construction
companies.
Arora (2016) observed that world’s renowned company
in India L&T have implemented this performance
appraisal concept to evaluate the performance of their
employees to identify competency gaps and explore the
potentiality of employees for facing the competitive
world. Performance appraisal system is generally
considered as a key to HR assessment and development.
This also observed that in case of the selected companies
under consideration performance appraisal is based on
the self-appraisal and appraisal by immediate superior
level.

Joseph et al (2014) explored the valuation of


effectiveness of performance appraisal as a tool to
measure employee productivity in organizations. This
also revealed that the appraisal system has been largely
characterized by non-disclosure of appraisal result to the
rates. This secrecy over performance appraisal results
tends to put in the hands of supervisors and managers a
potential tool for cracking down on “non-conforming
subordinates with impunity.

© 2018, IRJET | Impact Factor value: 6.171 | ISO 9001:2008 Certified Journal | Page 1013
International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056
Volume: 05 Issue: 01 | Jan-2018 www.irjet.net p-ISSN: 2395-0072

8. IDENTIFIED FACTORS disagreement with a statement. Another version used in


the research was a Linkert scale as
From various reviews several quality affecting factors
are identified which becomes the base to frame the  Substantially
questionnaire. The identified factors are  To certain extent
 Marginally
8.1 PERFORMANCE FACTOR  To less extent
 Not at all
 Attendance and Punctuality
 Quantity and Quality of work (Accuracy) The Linkert scale has proven to be very useful in
 Product and Process Knowledge or Job measuring whether people have a positive or negative
knowledge attitude towards an object or a statement, and is
 Follow-Up and Performance Improvement therefore suitable for this study.
 Organizational or Management Skills
10. CONCLUSION
8.2 BEHAVIORAL FACTOR
From the present study, factors affecting performance
 Past Negative or Positive Incident and productivity are identified. Project manager should
 Dependability and Initiative focus on these factors to improve the employee’s
 Problem Solving and Decision making performance. The result indicates that the most
 Promotion of cultural diversity significant factors affecting performance management
 Productivity, Responsibility and Dependability and appraisal are Performance Factors, Behavioural
Factors, Grading System, Personal Effectiveness and
8.3 GRADING SYSTEM Social Factors. Employees should perform on these
factors to enhance performance which ultimately can
 Documented Process help to get higher profits from the projects.
 Educational Qualification
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© 2018, IRJET | Impact Factor value: 6.171 | ISO 9001:2008 Certified Journal | Page 1014
International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056
Volume: 05 Issue: 01 | Jan-2018 www.irjet.net p-ISSN: 2395-0072

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© 2018, IRJET | Impact Factor value: 6.171 | ISO 9001:2008 Certified Journal | Page 1015